The Ministry of Economy and Finance on June 26 said it issued foreign exchange stabilization bonds denominated in the euro worth EUR 1.4 billion (USD 1.6 billion or KRW 2.2 trillion). Shown is a USD 100 bill on the morning of April 3, 2024, at the Anti-Counterfeit Response Center of Hana Bank's headquarters in Seoul's Jung-gu District. (Yonhap News)

By Kim Seon Ah 

The Ministry of Economy and Finance on June 26 announced that in a first under the Lee administration, it raised EUR 1.4 billion (USD 1.6 billion or KRW 2.2 trillion) in foreign currency through the issuance of euro-denominated foreign exchange stabilization bonds.

As the country's first euro-denominated bond issuance since 2021, the ministry attracted a record-high EUR 19 billion (USD 22.2 billion or KRW 30 trillion) in orders for the bonds, or 13.6 times the issuance amount, thanks to strong interest from global investors.

The issuance comprised two tranches each worth EUR 700 million: one with a maturity of three years and the other seven. The new government promoted its market-friendly policy through a London roadshow and online briefings, resulting in strong participation from highly reliable investors such as central banks and sovereign wealth funds.

The recent issuance of "Korean products" including those by the Export-Import Bank of Korea (EUR 750 million) and Industrial Bank of Korea (USD 1 billion) are said to reflect high trust in and expectations for the Lee administraiton on the global financial market.

The ministry's issuance will help expand the country's foreign currency reserves while securing early funding to repay bonds maturing in September and November. More bonds within the remaining cap of USD 1.9 billion could be issued in the second half of this year depending on market conditions.

sofiakim218@korea.kr